The dollar weakened against major currencies as US Treasury yields edged lower. This shift reflects a recalibration of investor expectations regarding the pace of economic recovery and future monetary policy.

Factors Influencing the Dollar’s Performance

• Treasury Yields: The decline in US Treasury yields reduced the attractiveness of dollar-denominated assets.
• Economic Data: Recent economic data releases have contributed to uncertainty about the strength of the US economy.
• Global Risk Sentiment: Overall risk sentiment in global markets also played a role in the dollar’s performance.

Market Outlook

Analysts suggest that the dollar’s trajectory will largely depend on upcoming economic data releases and any signals from the Federal Reserve regarding future policy adjustments. Market participants are advised to monitor these developments closely.